54 EC REC Bonds
54 EC bonds are also known as Capital gains tax exemption bonds, as an investment in these bonds allows exemption u/s 54 EC of the IT Act.
These 54 EC bonds are offered to investors who earned long-term capital gains from land or building and would like tax exemption on these gains. The eligible bonds under section 54EC include bonds on offer by REC i.e. Rural Electrification Corporation Ltd.
54 EC REC bonds come with a lock-in period of 5 years and are non-transferable. These bonds offer an interest rate of 5.00 percent per annum, payable annually.
Interest earned from 54 EC REC bonds is taxable. However, no TDS i.e. Tax Deducted at Source is deducted on interest. These bonds are AAA-rated and are backed by the government. Therefore, the risk of interest and capital payment is protected.
|Issued by||Rural Electrification Corporation Limited|
|Trustee||SBICAP Trustee Company Limited, Mumbai|
|Investment Option||Online or Offline.|
|Eligibility||Any individual, Hindu Undivided Family (HUF), approved institution and non-resident Indian (NRI), can invest in these bonds provided certain conditions are met.|
|Mode of Holding||Physical or Demat.|
|Issue price||INR 10000/- per Bond|
|Minimum investment||Two Bonds of INR 10,000/- each. (i.e. Minimum ₹ 20,000)|
|Maximum investment||500 Bonds of INR 10,000/- each (i.e. maximum ₹ 50,00,000) in a financial|
Note – Subject to provisions of Section 54EC of IT Act, 1961, as
|Transferability||Non-transferable and Non-negotiable|
|Lock-in Period||5 Years|
|Maturity||At par, 5 years from Deemed Date of Allotment|
|Interest payment||Annually on June 30 of each year.|
|Rate of Interest||5.00% annually|
|Tax Benefit||SEC 54 EC|
How to Buy 54 EC REC Bonds Online?
- The PAN no. should be mentioned in the Application Form. A self-certified copy of PAN card, Adhar card and certified copy of address proof of 1st Applicant and one canceled cheque should be submitted along with the application form.
- Investor(s) are required to submit the Application Form duly filled along with either a DD i.e. Demand Draft or account payee Cheque payable in favor of “Rural Electrification Corporation Limited – 54EC Bonds” along with necessary enclosures at the designated branches of collecting banks- HDFC Bank, ICICI Bank, Axis Bank, Canara Bank, IDBI Bank, IndusInd Bank or Union Bank.
- The applicant’s name, address, and application number should be mentioned on the reverse of the Demand Draft/Cheque. Cash, Money Orders, or Postal Orders will NOT be accepted.
- It is advisable that you keep a photocopy of the application form and mention his/her mobile number, and email ID in the application form.
54 EC REC Bonds Allotment Status
Investors could check the status of the application from the below link. Usually, it takes 10-15 working days
for the status to get updated in the below links.
|For Allotment Status / Bond Certificate Related|
|For Post Allotment/ Interest/redemption/transmission|
|Mr. A T Ravi Kiran / Mr. Santhosh Gurijana||Mr. Brahmanandam / Ms. Sumathi R / Mr. Tejasvi|
|Phone: 040 3321 5126||Phone: 040 67161598/ 040 6716 1663|